Microsoft Looks to Accelerate Fallout and Elder Scrolls Development

Microsoft is looking to bolster its gaming business by fast-tracking new titles in its most prominent franchises. According to a recent report from The Information, leadership within the Xbox division is working to accelerate the development of new games in the Fallout and The Elder Scrolls series, both of which have seen long gaps between major entries.

The push for a more aggressive production schedule comes as Microsoft CEO Satya Nadella publicly addresses the need to transform Xbox into a more sustainable business. Speaking at Hard Fork Live, Nadella noted that the division has been operating in the red for years, even joking that streamers playing Xbox software on YouTube are currently generating more revenue from the games than Microsoft itself.

Business Challenges and Internal Shifts

The internal focus on these flagship Bethesda franchises arrives during a difficult period for the company. A recent report from Windows Central suggests that many of the firm's recent releases have underperformed, even with the addition of PlayStation 5 ports. Furthermore, Bloomberg reports that significant layoffs are expected at the end of June, with The Information noting that Microsoft has not ruled out restructuring or spinning off the Xbox unit entirely, though no immediate plans for such a move are currently in place.

As part of a strategy to clean up the business, new boss Asha Sharma is reportedly prioritizing the revitalization of “beloved” IP. However, the company faces a significant hurdle: the realities of modern game development. Even with the green light to invest in these titles, the industry standard for producing a new, large-scale game remains four to five years, meaning fans may not see the results of this shift for some time.

Long Gaps Between Major Releases

The need for new content is underscored by the age of the current entries in these series:

• Fallout: It has been 11 years since the release of Fallout 4. While Fallout 76 has remained active and is slated to receive a native PlayStation 5 version later this year, the franchise has not seen a mainline single-player entry in over a decade.
• The Elder Scrolls: The Elder Scrolls VI was announced eight years ago, while the previous mainline game, Skyrim, launched 16 years ago. The series recently saw a release in the form of Oblivion Remastered last year.

Regarding future platform availability, the company remains non-committal. Xbox continues to send mixed messages, stating that it will attempt to pursue more console exclusives only if the overall health of its business improves. With Nadella suggesting the division still has a long way to go, it remains unclear whether these future titles will remain exclusive to Microsoft platforms or see broader releases.